19 practice questions

Home Improvement Contracts

Maryland requires a written contract for home improvement work, with no exemption for small jobs. These scenarios cover what the contract must contain, the notices it must carry, and how a clear contract prevents the disputes that become MHIC complaints.

1. 01Is a handshake deal legal for home improvement work in Maryland?No. Maryland Business Regulation §8-501 requires a written contract for all home improvement work, and a handshake or a text message does not satisfy it. Skipping the contract is a violation that can cost you your license.
2. 02What must a Maryland home improvement contract include?At minimum: (1) your name, address, and MHIC number; (2) a description of the work and materials; (3) the total price or how it is calculated; (4) estimated start and completion dates; (5) notice of the consumer's right to cancel; (6) the Guaranty Fund notice and the MHIC notice required by COMAR 09.08.01.26.
3. 03Which MHIC notice must every home improvement contract include?A notice about the Maryland Home Improvement Commission, required by COMAR 09.08.01.26, telling the homeowner how to file a complaint and how to contact the Commission.
4. 04What if a signed contract is missing the completion date?The contract is deficient and can be cited as a violation, because Maryland Business Regulation §8-501 requires an estimated start and completion date. Add a real date before work begins; "when you can" does not count.
5. 05Can a Maryland home improvement contract require arbitration?Yes, with limits. Under COMAR 09.08.01.25 the clause must be conspicuously displayed and cannot be a mandatory condition of the contract, so the homeowner must be able to opt out. A clause that breaks these rules is unenforceable.

6. 06What happens in a scope dispute when nothing is in writing?You usually lose. Without a written contract the MHIC typically sides with the homeowner, and working without one is itself a violation of Business Regulation §8-501, whoever is right about the scope.
7. 07Does a small cash side job need a written contract?Yes. Maryland home improvement law has no exemption or dollar threshold for small jobs, so even a cash fence repair for a neighbor needs a written contract with your MHIC number.
8. 08Does a $2,000 job need a written home improvement contract?Yes. There is no dollar threshold, so a $2,000 job needs a written contract with your MHIC number, the work, the price, dates, and the required notices, signed by the property owner rather than the realtor.
9. 09Can you start emergency repairs before signing a contract?Only the emergency itself. You can act at once to stop further damage, such as shutting off the water, but the repair work needs a written contract once the situation is stabilized.
10. 10Should you give a homeowner a ballpark or a written estimate?A detailed written estimate. It lets the homeowner compare contractors and leads into a contract that must state the total price or how it is calculated. A verbal ballpark is not illegal, but it breeds disputes.
11. 11How do you fix a vague scope of work before it becomes a dispute?Stop and write a detailed scope addendum before demolition: fixtures and models, tile and square footage, the tub, vanity and countertop, lighting and electrical, paint colors, and anything not included. Both parties sign it.
12. 12How should you respond when a client redlines your contract?Negotiate rather than refuse. Accept the reasonable changes and counter the one-sided ones, such as delay penalties with no exceptions for weather, supply problems, or change orders. Refusing to negotiate loses good clients.
13. 13How should a contract handle upgrades during the project?Through a change order provision: every upgrade goes through a written request, revised pricing, mutual agreement, and a signed amendment. It gives the client flexibility and protects you from scope creep without payment.
14. 14How do you price a contract for work that starts months later?Sign it now with a future start date and a materials escalation clause that adjusts the price if costs rise past a set threshold. The contract still needs every MHIC-required element.
15. 15Should a multi-year renovation be one contract or several?Several. A separate contract for each phase keeps pricing, scope, and code requirements current, while one multi-year contract locks in terms that will almost certainly change. A non-binding letter of intent can cover the overall plan.
16. 16Can you sign a home improvement contract with a 17-year-old?Not safely. In Maryland a contract with someone under 18 is generally voidable at the minor's option, even after the work is done. Have a trustee sign if one manages the property, or wait until the owner turns 18.
17. 17What happens when a homeowner fires you partway through a job?Your contract's termination clause governs: notice, payment for completed work, return of unused materials or prepayments, and a final accounting. Document the work with dated photos, leave the site safe, and invoice for what you finished.
18. 18Can you substitute materials named in the contract?Not without the homeowner's written approval. Even an equal or better product breaches the contract if it is not the one specified, so present the alternative, its specs, and any cost impact, and let the homeowner decide.
19. 19How should you handle materials the homeowner supplies?Install them, but state in the contract that your workmanship warranty does not cover defects in materials you did not supply, inspect them before installation, and advise against defective materials in writing.